Well timed, thanks. I would add a simple (simplistic) way of re-evaluating valuations.
When "everyone" believed inflation remains below 2% "forever", it was easy to value a stock based on its value 10 years into the future. With significantly higher inflation, the loss of purchase power demands more attention to specifics, adding loss of purchasing power and risk premium.
Well timed, thanks. I would add a simple (simplistic) way of re-evaluating valuations.
When "everyone" believed inflation remains below 2% "forever", it was easy to value a stock based on its value 10 years into the future. With significantly higher inflation, the loss of purchase power demands more attention to specifics, adding loss of purchasing power and risk premium.